Stellar Diamonds Regulatory News (STEL)

25 Feb 2008 07:00

West African Diamonds PLC25 February 2008 25th February 2008 WEST AFRICAN DIAMONDS PLC RESULTS OF DETAILED GROUND GEOPHYSICAL SURVEY OVER THE DROUJBA KIMBERLITE PIPE IN GUINEA Main Droujba kimberlite pipe larger than originally thought Potential 100% increase in size of the Droujba pipe Several new possible kimberlite pipe exploration targets identified within the vicinity of Droujba The board of West African Diamonds plc, the AIM listed diamonds and preciousmetals explorer and developer (AIM: WAD), is pleased to provide an update on itsexploration activities in Guinea. A suite of the most up to date groundgeophysical surveys was conducted over the Droujba kimberlite pipe and satelliteKatcha dykes during December 2007 by a specialist geophysical contractor fromSouth Africa. A grid of 1000 x 1000m was laid over the main Droujba kimberlitepipe. The grid was oriented to take into account shape and expected size of theore body as well as local geology based on available information and groundobservations on site. Traverses were in a north/south direction taking intoaccount the strike and orientation of the Koiyang - Kolokoro dyke systems. Thegeophysical methods included, Controlled Source Audio Magneto-Tellurics (CSAMT),Ground Magnetics, Electro-Magnetics (EM) and Gravity. The table below summarises the main parameters for each method. GEOPHYSICAL METHOD No OF LINES STATION SPACING LINE SPACING TOTAL NO. STATIONSCSAMT 41 25 25m 1681GRAVITY 41 25 25m 1681ELECTROMAGENETICS (EM) 41 25 25m 1681GROUND MAGNETICS 41 5 25m 7626 The resultant data was analysed, interpreted and used in the production of ageophysical representation of the geology of the Droujba kimberlite pipe and thesurrounding areas. The data analysis and interpretation was completed inJanuary with three technical reviews being held. These included reviewsundertaken by Mr EO Kostlin and Dr D.Sutherland, international experts in theirrespective fields of geophysics and West African geology. The key outcome of the survey confirms that the shape and size of the Droujbapipe appears to be larger than initially thought. From the results of thesurvey, the probable size of the kimberlite seems at least twice as large as thepreviously postulated size of 0.6ha (based on the area of the current waterfilled open pit). Parts of this potential extension could have eluded detectionin the past because of the complex geology in combination with historicalexploration technologies. In addition, two new signatures characteristic ofkimberlitic vents or satellite pipes were discovered. Further, two newelongated magnetic bi-polar shapes with signatures similar to kimberlitic dykesor small kimberlite blows were also highlighted. These new potential targetshave been ranked for drilling to test for the existence of kimberlite. This release has been approved by Alex van Zyl, Technical Director, West AfricanDiamonds. Alex van Zyl (B.Sc. Stellenbosch, B.Sc. Hons. Pretoria) spent a longcareer in Anglo American in the diamond division, ending up 1990 to 1997 withworldwide responsibility for diamond exploration and evaluation. He was aconsultant to De Beers from 1997 to 2002. James Campbell, Deputy Chairman, said: "Following a detailed review of the data on the Droujba kimberlite and environsby Dr Donald Sutherland, it became apparent that further study of the high-gradeDroujba kimberlite pipe could prove highly value enhancing. The WAD board decided to invest in a comprehensive ground geophysical survey asa prelude to identifying drilling targets. The survey has been successful notonly in terms of potentially doubling the size of the kimberlite pipe, but alsofinding four new 'kimberlite indicative targets within close vicinity of theDroujba pipe. A proposal to undertake a drilling programme on the main Droujba and satellitepipes will shortly be presented to the WAD board, with the target of provingwhat we believe to be considerable geological and eventually monetary potential." Enquiries: West African Diamonds John Teeling, Chairman + 353 1 833 2833 James Campbell, Deputy Chairman +27 83 457 3724 Blue Oar Securities Plc John Wakefield +44 (0) 117 933 0020 College Hill Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes www.westafdiamonds.com This information is provided by RNS The company news service from the London Stock Exchange